Whats the biggest factor affecting the market?
The really important issues aren’t economic. The uncertainty of a Kerry Administration has unnerved many investors. This isn’t to say that other nonpolitical factors don’t matter. They do, but much less so when the election has such profound ramifications (see BW Online, 8/30/04, “Nothing to Fear but the Election Itself”). Q: So if it weren’t for the Bush-Kerry contest, we might be seeing stronger stock prices? A: Most likely, yes. In years with highly contested elections — especially this one because there’s so much at stake — the period before the vote has tended to be one of great uncertainty, with the markets choppy. And as we all know, investors hate uncertainty. Q: If the Republican Convention goes off without a hitch next week, will stocks react positively? A: There should be enough relief to move stocks higher. However, if the market responds positively and quickly, it likely won’t be a long-lasting rally because of the mixed technical conditions. As a New Yorker, I can tell
